China's textile market is projected to experience robust growth in 2026, reaching approximately RMB 1.85 trillion, an 8.2% increase from 2025. Consumer upgrading, technological innovation, and steady growth in domestic and international market demand are the main drivers of this growth. In terms of market segments, apparel fabrics account for the largest share at approximately RMB 680 billion, representing 36.8% of the overall market; home textiles reach RMB 420 billion, accounting for 22.7%; industrial textiles reach RMB 380 billion, accounting for 20.5%; and other textiles reach RMB 370 billion, accounting for 20.0%. The operating revenue of textile enterprises above a designated size increased by 7.9% year-on-year, and total profits increased by 6.4%, indicating a continued improvement in the industry's overall profitability.
On the export front, China's total textile and apparel exports are projected to reach US$285 billion in 2026, a year-on-year increase of 5.8%, with apparel exports at US$158 billion and textile exports at US$127 billion. The domestic market performed even better, with total retail sales reaching RMB 1.57 trillion, a year-on-year increase of 9.1%, demonstrating the enormous potential of the domestic consumer market. Furthermore, it is foreseeable that the Chinese textile product market will maintain an average annual growth rate of 6.8% between 2026 and 2031, reaching a market size of RMB 2.5 trillion by 2031.
The traditional textile manufacturing industry is accelerating its transformation and upgrading towards intelligent and green manufacturing. Emerging industries such as high-end chemical fibers, functional fabrics, and intelligent manufacturing equipment are developing rapidly, accounting for 32.6% of the industry's total output value, an increase of 2.8 percentage points compared to 2025. Meanwhile, emerging concepts such as "intelligent textiles" and "green fibers" are leading new trends in industry development, and the textile industry is gradually moving towards high quality and high added value.
Taking functional fibers as an example, the application of high-performance fibers, including polyester and nylon, continues to increase. It is projected that by 2026, the production of functional fibers will grow to nearly 2 million tons, a growth trend primarily driven by the widespread application of new materials in apparel, home textiles, and industrial textiles. In terms of fabric technology, the market for high-end products such as smart textiles, protective textiles, and medical textiles is expanding rapidly, with significantly improved technological content and added value. In 2026, the production of functional textiles will reach 18.5 million tons, a year-on-year increase of 14.2%, accounting for 12.8% of total fabric production.
The continuous increase in R&D investment intensity is a significant driving force for market development. The industry's R&D investment as a percentage of operating revenue reached 2.15%, an increase of 0.18 percentage points compared to 2025, with new technologies, new products, and new business models constantly emerging. In the fiber materials sector, the output of high-value-added products such as high-performance fibers, bio-based fibers, and functional fibers has grown rapidly. Specifically, carbon fiber production reached 82,000 tons, a year-on-year increase of 15.6%; aramid fiber production reached 18,000 tons, a year-on-year increase of 12.3%; and bio-based chemical fiber production reached 1.2 million tons, a year-on-year increase of 18.7%.
With the continuous improvement of policies supporting digital transformation and mechanisms promoting intelligent manufacturing, the textile industry invested 28 billion yuan in digital transformation in 2026, and the intelligent manufacturing penetration rate reached 65.7%, an increase of 12.3 percentage points compared to 2025. The introduction of automated equipment and intelligent management systems can effectively improve production efficiency and product quality. For example, the penetration rate of intelligent weaving equipment reached 20% in 2026, and in the dyeing and finishing process, the application of environmentally friendly dyes is gradually becoming more widespread; it is estimated that by 2031, the market share of environmentally friendly dyes will reach 60%.
The raw material supply chain system exhibits a complex and diverse structure. The supply patterns of major raw materials such as cotton, chemical fibers, and wool directly impact the operational efficiency and cost control of the entire industrial chain. In 2026, China's total imports of textile raw materials reached approximately US$45 billion, a year-on-year increase of 6.8%, of which cotton imports were approximately 1.8 million tons and chemical fiber raw material imports reached 3.2 million tons. Domestic cotton planting area remained stable at around 45 million mu, with a yield of approximately 5.8 million tons. The localization rate of the chemical fiber industry continued to improve, with major varieties such as polyester filament and viscose staple fiber basically achieving self-sufficiency. In 2026, chemical fiber production reached 62 million tons, a year-on-year increase of 8.1%, of which polyester production accounted for 78.3% of the total.
The competitive landscape among leading enterprises is showing a more concentrated and differentiated development trend. The top ten enterprise groups accounted for a combined market share of 42.8%, an increase of 3.1 percentage points compared to 2025, indicating a clear trend of continued increase in industry concentration. Hengli Group maintained its leading position in the industry with operating revenue of approximately 48 billion yuan, achieving a market share of 2.6%, a year-on-year increase of 0.3 percentage points; Rongsheng Petrochemical Group ranked second with operating revenue of 42 billion yuan, holding a market share of 2.3%; and Tongkun Group ranked third with operating revenue of 38 billion yuan, holding a market share of 2.1%. These leading enterprises, leveraging their advantages in capital, technology, and brand, occupy a favorable position in market competition and are continuously increasing their R&D investment and industrial layout, driving the development and upgrading of the industry.
Consumer demand has shifted towards diversification, personalization, and higher quality, with consumer demand for textiles expanding from basic functionality to include fashion, comfort, and health. In 2026, the proportion of consumer demand for functional textiles significantly increased to 32.7%, a 4.2 percentage point increase compared to 2025. The concept of health and environmental protection has gained widespread acceptance, leading to rapid growth in demand for products made from environmentally friendly materials such as organic cotton, bamboo fiber, and Tencel. In 2026, the retail sales of environmentally friendly textiles reached 218 billion yuan, a year-on-year increase of 16.8%, accounting for 13.9% of the overall market. Personalized customization demand continued to grow, with the customized textile market reaching 42 billion yuan in 2026, a year-on-year increase of 23.4%.
With the upgrading of consumption, the casual wear, sportswear, and home textile markets have also shown a good growth trend. In 2026, the casual wear market reached 400 billion yuan, a year-on-year increase of 10%; the sportswear market reached 300 billion yuan, a year-on-year increase of 8%; and the home textile market reached 150 billion yuan, a year-on-year increase of 5%. The rise of e-commerce platforms has changed the traditional sales model. In 2026, China's e-commerce sales of apparel reached 1.2 trillion yuan, a year-on-year increase of 15%. It is estimated that by 2031, online sales will account for 30% of the entire industry.